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Fintech platform Greenwood and private membership network The Gathering Spot have today announced in a joint statement that they have resolved their outstanding business dispute.
Just over a year after Greenwood’s acquisition of the Gathering Spot, tension between both parties spilled into public this month with the reported firing of The Gathering Spot co-founder TK Petersen followed by a multi-million dollar lawsuit. The events also sparked heated discussions across social media sites.
In an unexpected turn of events the business partners say they are now willing to put their differences behind them in a bid to continue to serve and empower the community.
“Greenwood was founded to support financial freedom and economic prosperity for the Black community, and we acquired The Gathering Spot last year to combine forces towards this common mission,” said Ryan Glover, CEO & Co-founder of Greenwood.
“We are ready to finish what we started, in the same spirit that we began with and continue to build and grow our community,” said Ryan Wilson, CEO of The Gathering Spot.
“No one wins when the family feuds. We apologize for distracting our communities over the last week as this became a topic of so much public discussion. As we work together to build for our community and customers, we will continue to hold ourselves to the highest standards,” said both Ryan Glover and Ryan Wilson.
They also posted this statement on social media: “Even though business disputes are common in corporate transactions, Greenwood and The Gathering Spot are pleased to put this issue to rest and move forward.
It continues: “Terms of the agreement were not disclosed, but both Greenwood and The Gathering Spot are satisfied with the outcome and look forward to continuing to champion inclusive economic growth and community. The settlement marks the end of a period of friction between the two companies and opens a new chapter of collaboration and shared visions.”
Greenwood, a neobank geared toward serving Black and Latinx customers, acquired The Gathering Spot, a private membership network focused on the Black Community, reportedly for a sum of $50 million, back in May 2022.
At the time, Greenwood’s Paul Judge, speaking of the acquisition, said: “It is an important milestone to have two Black-owned companies on both sides of an M&A transaction. It brings a new meaning to the term ‘black-on-black’.”
This month controversy erupted as The Gathering Spot reportedly fired co-founder TK Peterson, causing shock and outrage among the community.
In what TGS has now described as an “unauthorized” email, with the subject line “Announcing New Leadership”, it was revealed that McCloskey, former CFO of Trella Health, an Atlanta-based healthcare provider, would come on as the new Greenwood CFO.
Despite TGS’s assurances on Instagram, that Petersen’s departure was unrelated to McCloskey’s hiring, the events were not well received by members of the TGS community.
On 17 July it was revealed Wilson had filed a lawsuit on behalf of himself and co-founder TK Petersen, against Greenwood CEO Ryan Glover and board member Dr Paul Judge for alleged fraud and deception.
According to the lawsuit, filed in the Superior Court of Fulton County of Georgia, “Instead of honoring Greenwood’s obligation to pay the Shareholders, and in violation of their fiduciary duties to those Former TGS Unitholders, Defendants instead paid to themselves a bonus.”
Seeking millions of dollars in damages, Wilson and Petersen also said they want to regain ownership of The Gathering Spot. Greenwood led a countersuit alleging TGS founders had misrepresented their finances, leading to unforeseen obligations.
The Gathering Spot has over 12,000 members and locations in DC, Atlanta, and Los Angeles. Both Wilson and Petersen, TGS cofounders have been presented with the Pheonix Award, Atlanta’s highest honor.
Additional reporting Zara Shepherd-Brierley
